Any other stocks?

Screening Filters

1. Beta = LowRisk

   • Purpose: Find stocks with lower market sensitivity.
   • Rationale: The user wants defensive stocks that can better withstand a correction. Low-beta names generally move less than the broader market, which makes them more suitable for downside resilience.

2. Sector = Utilities, Consumer Non-Cyclicals, Healthcare

   • Purpose: Focus on traditionally defensive sectors.
   • Rationale: These sectors tend to have steadier demand and more stable cash flows during market selloffs. Utilities are essential services, consumer non-cyclicals provide everyday necessities, and healthcare is generally less economically sensitive than cyclical sectors.

3. Industry = Food & Tobacco

   • Purpose: Narrow the search to especially defensive industries within consumer staples.
   • Rationale: Food and tobacco businesses often have recurring demand, pricing power, and strong cash generation, which can help them hold up better in a market downturn.

4. Theme = Tobacco

   • Purpose: Include tobacco-focused companies with defensive characteristics.
   • Rationale: Tobacco companies often have high margins, consistent free cash flow, and meaningful dividend policies, making them a common fit for defensive income screens.

5. Free Cash Flow TTM > 0

   • Purpose: Require the company to generate real cash after capital expenditures.
   • Rationale: Dividend safety matters in a downturn. Positive free cash flow is one of the best signs that dividends are being funded sustainably, not just through accounting earnings.

6. Net Margin > 0

   • Purpose: Ensure the company is profitable on a bottom-line basis.
   • Rationale: Positive net margin helps confirm the business is not only generating revenue, but also keeping enough profit to support dividends and absorb stress.

7. Operating Margin > 0

   • Purpose: Screen for companies with profitable core operations.
   • Rationale: A positive operating margin suggests the core business is healthy before financing and tax effects. That is especially important for defensive names expected to remain stable in a correction.

8. Current Ratio ≥ 1

   • Purpose: Check short-term liquidity.
   • Rationale: A current ratio at or above 1 suggests the company has enough short-term assets to cover short-term liabilities, which improves financial resilience if markets weaken.

9. Dividend Yield TTM ≥ 3%

   • Purpose: Target stocks that provide meaningful income.
   • Rationale: The user is specifically asking for dividend-paying defensive stocks. A 3% minimum yield filters for names that provide attractive income while waiting through volatility.

10. Dividend Payout Ratio ≤ 80%

    • Purpose: Avoid dividends that look stretched.
    • Rationale: A payout ratio capped at 80% helps exclude companies that are returning too much of their earnings. That improves the odds the dividend can be maintained during a market correction or earnings slowdown.

Why These Filters Match the User’s Request

• They directly target defensive dividend stocks rather than high-growth or cyclical names.
• The screen emphasizes downside resilience through low beta and defensive sectors.
• It also adds fundamental quality checks: positive free cash flow, profitability, and liquidity.
• The income filters ensure the results are actually meaningful dividend payers, while the payout cap helps screen for sustainability.

Filter Match Check

• Yes, the filters match the user’s request.
• The requested indicators are all supported and were applied appropriately.
• Together, they are well-suited to finding stocks that are more likely to hold up relatively well in a 10% correction while still paying a sustainable dividend.

If you want, I can also explain which of these filters is the most important for defensive performance and which ones are mainly for dividend safety.